Financial Instruments and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

The following table presents the Company’s fair value hierarchy for those assets and liabilities measured at fair value on a recurring basis (in thousands):

	December 31, 2019						December 31, 2018
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Money market funds	$	—	$	—	$	—	$	4,504	$	—	$	—
Derivative financial instruments		—		2,583		—		—		7,018		—
Liabilities
Derivative financial instruments		—		39,061		—		—		7,304		—

Schedule of Derivative Financial Instruments

The Company had the following interest rate swaps and caps for the periods presented (dollars in thousands):

							Strike Rate								Fair Value
Derivative Instrument	Aggregate Notional Amount		Effective Date		Maturity Date		Low				High			Balance Sheet Location	December 31, 2019			December 31, 2018
Core
Interest Rate Swaps	$	423,442	Dec 2012-July 2020		Mar 2022-July 2030			1.71	%	—		3.77	%	Other Liabilities ^(a)	$	(33,750	)	$	(6,332	)
Interest Rate Swaps		139,118	Nov 2015 - July 2016		July 2020-June 2021			1.24	%	—		1.31	%	Other Assets		456			6,022
	$	562,560													$	(33,294	)	$	(310	)

Fund II
Interest Rate Swap	$	19,073	Oct 2014		Nov 2021			2.88	%	—		2.88	%	Other Liabilities	$	(139	)	$	—
Interest Rate Swap		—		—		—		—		—		—		Other Assets		—			108
Interest Rate Cap		23,300	Mar 2019		Mar 2022			3.50	%	—		3.50	%	Other Assets		1			—
	$	42,373													$	(138	)	$	108

Fund III
Interest Rate Cap	$	58,000	Dec 2016		Jan 2020			3.00	%	—		3.00	%	Other Assets	$	—		$	8

Fund IV
Interest Rate Swaps	$	14,395	Dec 2019		Apr 2022 - Dec 2022			1.48	%	—		1.52	%	Other Assets	$	22		$	851
Interest Rate Swaps		88,304	Mar 2017 - May 2019		Mar 2020 - Dec 2022			1.82	%	—		4.00	%	Other Liabilities		(812	)		—
Interest Rate Caps		90,600	July 2019 - Dec 2019		Dec 2020 - July 2021			3.00	%	—		3.50	%	Other Assets		—			8
	$	193,299													$	(790	)	$	859

Fund V
Interest Rate Swaps	$	177,726	Oct 2019 - Nov 2019		Oct 2022 - Oct 2024			1.25	%	—		1.47	%	Other Assets	$	2,104		$	21
Interest Rate Swaps		156,900	Jan 2018-Mar 2019		Feb 2021-Mar 2024			2.27	%	—		2.88	%	Other Liabilities		(4,360	)		(972	)
	$	334,626													$	(2,256	)	$	(951	)

Total asset derivatives															$	2,583		$	7,018
Total liability derivatives															$	(39,061	)	$	(7,304	)

(a)

Includes two swaps with a total fair value of ($11.8) million and ($2.9) million at December 31, 2019 and 2018, respectively, which were acquired during July 2018 and are not effective until July 2020.

Schedule of Other Financial Instruments Carrying Values and Fair values

The Company’s other financial instruments had the following carrying values and fair values as of the dates shown (dollars in thousands, inclusive of amounts attributable to noncontrolling interests where applicable):

			December 31, 2019				December 31, 2018
	Level		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Notes Receivable ^(a)		3	$	114,943	$	113,422	$	111,775	$	109,532
Mortgage and Other Notes Payable ^(a)		3		1,179,503		1,191,281		1,026,708		1,021,075
Investment in non-traded equity securities ^(b)		3		1,778		57,964		—		56,337
Unsecured notes payable and Unsecured line of credit ^(c)		2		538,425		539,362		533,625		533,954

(a)

The Company determined the estimated fair value of these financial instruments using a discounted cash flow model with rates that take into account the credit of the borrower or tenant, where applicable, and interest rate risk. The Company also considered the value of the underlying collateral, taking into account the quality of the collateral, the credit quality of the borrower, the time until maturity and the current market interest rate environment.

(b)	Represents Fund II’s cost-method investment in Albertsons’ supermarkets and the Operating Partnership’s cost-method investment in Fifth Wall (Note 4).

(c)

The Company determined the estimated fair value of the unsecured notes payable and unsecured line of credit using quoted market prices in an open market with limited trading volume where available. In cases where there was no trading volume, the Company determined the estimated fair value using a discounted cash flow model using a rate that reflects the average yield of similar market participants.